...
Josephspfennig invoice with formula and explanation

Josephspfennig bill, explanation & criticism

You know the ominous Joseph's penny? The story is made up, but you can learn a lot from it and we're almost sure you'll be amazed at the result!

The Josephspfennig Declaration is quickly made, but the significance behind the story is enormous for investors. Therefore, in this article, we take some time for a clear Josephspfennig calculation up to the year 2020 and also express criticism.

Table of contents

Josephspfennig Declaration 2023

To the Josephspfennig declaration we go back to the year 0, when Joseph wants to invest some money for him at the birth of his son. For this purpose he takes a penny and goes to the bank. At that time the interest rates were even better than today and he could fix an interest rate of a proud 5%.

"5% interest on a penny, what will Jesus be able to buy with that later?" You think?

Now the story continues. Neither Joseph nor Jesus ever think of investing money again and forget the penny invested in the bank. Year after year passes, every year 5% interest is added to the account. Before you scroll on, please think for yourself: How much wealth will one penny (also centime or cent) become 2020 years later, if you receive 5% compound interest every year?

1,000CHF, 50,000CHF, 10 million francs or something completely different?

The Josephspfennig explains with history and criticism
With an interest rate of 5% after 2020 years, 1 Pfennig/centime becomes an incredibly large fortune! At the gold price at the time of our research, you could buy 576506 times the weight of our sun in pure gold. If there was so much gold!

Our financial tips for 2026

"Intelligent people learn from the mistakes of others".

We have compiled our top selection for you from all our tests and experience reports:

Online broker comparison trading platforms comparison Swiss broker comparison test
Swiss bank account recommendation test experience report account
swiizerfranke ebook investment guide switzerland pdf download
Pillar 3a Comparison Recommendation Experience Report
Crypto Broker Switzerland Comparison Buy Bitcoin
swiss online finance course investing pensions online learning live calls swiss online finance course

Josephspfennig invoice & Excel formula

Before discussing the incredible result from above, we would like to briefly explain the Josephspfennig calculation. For this, we will use the compound interest formula:

Final capital = initial capital * ( 1 + interest rate )^Term

Josephspfennig example with 5% interest and 1 centime initial capital for a term of 2020 years: 

0,01 * ( 1 + 0,05)^2020 = 63,443e^39

Written out, the result of the final capital = CHF 63,443,059,922,674,400,000,000,000,000,000,000,000,000,000,000,000

As this result of the Josephspfennig 2020 cannot be classified for us, we calculate the equivalent value in gold.

The gold price fluctuates of course, but we take the price of 56.205CHF per kg of gold. 

If you divide the final capital by the gold price 63.443e^39CHF / 56,205CHF per KG, you get

1128769434000000000000000000000000000kg Gold. This is still an incredible amount of gold.

Let's start modestly and take the weight of the earth as a reference. Our beautiful earth weighs an impressive 5,972 × 10^24 kg. If we multiply the weight of the earth by the price of gold, we get the price of the earth. We then divide our final capital by the price of the "golden earth". In 2020, you could still buy about 189 million earth spheres of pure gold. Well, that's still not so easy to imagine.

So bring on the sun! The sun weighs an impressive 1,989 × 10^30 kg. The calculation is the same as for the "golden earth" and results in around 567,000 sun spheres made of pure gold. I don't know which dealer we can buy this quantity from, but we've slowly arrived at a handy figure! 

Zak Bank Cler referral code voucher code 2020 50CHF gift Zak Bank Cler experience report test review Zak voucher code

Josephspfennig Criticism & Significance

To criticize the Josepspfennig is not very difficult. 2020 years maturity? 5% interest? Where can you get something like that? 

The fictitious example becomes relevant, however, if one considers 1. that certain institutions, dynasties or even families have owned large fortunes for centuries. And these 2. have not started with a penny, but with millions or even billions. Also, some returns are perhaps even higher than 5% on average. Especially when you think of major players on the stock market or dynasties that even initiate entire wars politically just to make a profit. But more about this elsewhere. 

Conclusion about the Josefspfennig calculator

Meaning of Jospehspfennig and Josefspfennig calculator:

Do you know the YouTube video of Fabian the goldsmith? The Joseph penny not only illustrates the power of the compound interest effect. Imagine the citizens of a country borrowing money from an institution. The loan is long-term and the sum is in the billions, which is not unusual for government debt. Can you imagine how high taxes, consumption and economic growth must be to pay back the interest costs alone? Can a finite earth with finite resources cope with this? Do we perhaps have to redefine growth? Maybe even reintroduce full money?

These topics are exciting, but not easy to answer and would go beyond the scope of this article. For now, let's stick to at least one learning: compound interest is powerful! That's why it is often referred to as the 8th wonder of the world. Understanding it and perhaps also for you with skillful investments can therefore change a lot for you.

If you liked this article, you should read the Rule of 72 because you can calculate the doubling time of investments in your head.

Top recommendations for 2026

Your key to success! Discover our top recommendations from real testimonials.

Swiss bank account recommendation test experience report account
Josephspfennig 1
ETF buy Switzerland recommendation savings plan exchange traded funds investing
Pillar 3a Comparison Recommendation Experience Report
Swiss Online Broker Recommendation Test Comparison
Bank account recommendation best Swiss bank account test
8 responses

  1. Read Silvio Gesell, Michael Unterguggenberger, Dieter Suhr, Helmuth Creutz, Margrit Kennedy and many more. Then you will know more. You can familiarise yourself with the topic on an equal footing. Have fun🌈

    Reply

  2. The articles by Markus Krall, who has long been in favour of the theory of sovereign money or a gold-backed currency, are interesting.
    However, the practicability of its implementation may be questioned. In a world where growth and expansion seem to be the religion.
    Or would it be? If this had existed, we might not be as far along today in terms of technology, but the imbalances and destruction of the planet would probably be far less advanced.

    Best regards

    Reply

  3. Hey,

    beautiful page.
    'Josephspfennig example with 5% interest and 1 centime initial capital with a term of 2002 years: ' Here you surely mean a term of 2020 years.

    LG
    Dirk

    Reply

  4. Nice explanation and pictures. But a question: Would one not have to calculate with the volume for golden earths and suns? Gold has a density of approx. 19.3 g/cm^3 and the earth only an average density of 5.5 g/cm^3. If I weigh the mass of the earth in gold, I have only approx. 28% of the volume, thus a very much smaller sphere.

    Reply

    1. Hello Joe
      thank you for your feedback and for thinking along.
      Let's think "out loud" together again 🙂 The density results from the quotient of mass and volume. If we have a mass X (our amount of gold) and know the density of gold, we can extrapolate to the volume. The volume then assumes the size of many suns, but is based on the density of gold.

      Should be all correct, right? 🙂

      Reply

  5. Dear Eric
    You made a small mistake with your formula "0.01 * ( 1 + 0.005)^2020 = 63.443e^39". 5% is 0.05. So you are calculating with half a per cent (0.5%).
    Best regards
    Engelbert

    Reply
Write a comment

Your e-mail address will not be published. Required fields are marked with * marked.

Get your free
Precaution Guidebook
receive!
No thanks.
Get your free
Investment Guidebook
receive!
No thanks.